Additional Problem 12

Sheridan Ltd., which follows ASPE, had the following comparative statement of financial position:

Sheridan Ltd. Comparative Statement of Financial Position As at December 31
Assets			2018				2017
Cash			$	70,520			$	43,000
Accounts receivable				116,960				87,720
Inventories				68,800				103,200
Prepaid insurance				8,600				6,880
Equipment				264,880				223,600
Accumulated depreciation-equipment				(60,200	)			(43,000	)
Patents				68,800				86,000
	Total assets		$	538,360			$	507,400
Liabilities and Shareholders Equity
Accounts payable			$	79,120			$	68,800
Interest payable				6,880				10,320
Wages payable				13,760				6,880
Income taxes payable				13,760				17,200
Long-term note payable				103,200				118,680
Common shares				223,600				223,600
Retained earnings				98,040				61,920
	Total liabilities and shareholders equity		$	538,360			$	507,400

Additional information:

1.		Net income for the fiscal year was $46,440.
2.		Equipment that cost $34,400 and was 70% depreciated was sold during 2018, for a gain of $3,440.
3.		No patents were purchased or sold during the fiscal year.

Prepare the statement of cash flows using the indirect format. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000)